A $1.5 billion online gambling ring was busted in China as over 330,000 individuals placed digital currency bets on the World Cup Soccer games. The illegal gambling activity was enforced by The Guangdong Provincial Public Security Department. China has banned all cryptocurrency trading and usage since last September. This digital currency betting shows a valuable use of cryptocurrencies as individuals are able to send money very easily. Chinese government is being very restrictive of citizens using cryptocurrency inside their country out of concern of illegal scams and pyramid schemes. There are a lot of profit and tax revenue to be earned from the trading of cryptocurrency that we believe the country is missing out on. We hope there will be new regulations added soon to better protect the investors but provide a path for usage of cryptocurrency inside China.
We will be discussing the current regulations and possibility of new regulation at our US China Blockchain & Digital Currency Conference at the LAX Marriott in Los Angeles on August 22nd. Registration is currently open and we can’t wait to see you all there.